Full Judgment Text
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CASE NO.:
Appeal (civil) 4305-4306 of 2002
PETITIONER:
Asstt. Commissioner of Income Tax, Surat
RESPONDENT:
Surat City Gymkhana
DATE OF JUDGMENT: 04/03/2008
BENCH:
ASHOK BHAN & DALVEER BHANDARI
JUDGMENT:
JUDGMENT
O R D E R
CIVIL APPEAL NOS.4305-4306 OF 2002
The respondent-assessee claimed exemption under Section 10(23) of the Income-tax
Act, 1961 for the Assessment Years 1991-92 and 1992-93. The said exemption was claimed
on the basis that the objects of the respondent-assessee are exclusively charitable. The
assessing officer rejected the claim. Appeals filed before the Commissioner of Income-tax
(Appeals) were also dismissed. Aggrieved thereby, the assessee filed further appeals before
the Income Tax Appellate Tribunal (’the Tribunal’). The Tribunal, by order dated 20th
January 2001, allowed the appeals filed by the respondent-assessee. The appellant filed
appeals before the High Court of Gujarat. The Revenue claimed that the following two
substantial questions of law arise from the order of the Tribunal :
"(A) Whether, on the facts and circumstances of the case, the Income Tax
Appellate Tribunal was justified in law in holding that the objects of the Trust
restricting benefit to the members of the Club would fall within the purview of
the act of "General Public Utility" u/s 2(15) of the Income Tax Act constituting
as a section of public and not a Body of Individuals?
C.A.Nos.4305-4306/02 .... (contd.)
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(B) Whether, on the facts and circumstances of the case, the Income Tax
Appellate Tribunal was justified in law in holding that Registration u/s 12-A
was a falt-accompli to hold the A.O. back from further probe into the objects of
the Trust?"
By the impugned order, the High Court dismissed the appeals, in limine, relying on
a
decision of the same Court in the case of Hiralal Bhagwati v. Commissioner of Income-Tax
2000 (246) ITR 188 = 2000 (161) CTR (Gujarat) 401 holding that the questions raised in
the appeals are covered by the aforesaid decision.
Being dissatisfied by the order of the High Court, the Revenue has filed these appea
ls.
This Court, on 22nd July 2002, granted leave in respect of Question No.’B’ only. Th
e
appeals were not entertained in respect of Question No.’A’ and it was noted that the
appeals by the High Court were rightly dismissed insofar as Question No.’A’ is concerned
as the appellant did not challenge the correctness of the judgment in the case of Hiralal
Bhagwati (supra).
On a perusal of the judgment of the Gujarat High Court in the case of Hiralal Bhagwa
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ti
(supra), we now find that Question No.’B’ is also concluded by the said judgment [refer to
1st para of page 196]. Since the Revenue did not challenge the decision in the said case, t
he
same has attained finality. Question No.’B’, therefore, is to meet the same fate as Questio
n
No.’A’ as this Court had declined to grant leave in respect of
C.A.Nos.4305-4306/02 .... (contd.)
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Question No.’A’ on the ground that the Revenue did not challenge the correctness of the
decision in the case of Hiralal Bhagwati (supra). It appears that the fact, that Question
No.’B’ was also covered by the aforementioned judgment, was not brought to the notice of
their Lordship and, therefore, leave was granted restricted to question No.’B’.
In this view of the matter, these appeals deserve to be dismissed. Ordered accordin
gly.
No costs.